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HomeNewsRivers State Government Rejects Claims of Julius Berger Withdrawing Over Payment Issues

Rivers State Government Rejects Claims of Julius Berger Withdrawing Over Payment Issues

Rivers State Government denies claims that Julius Berger is abandoning projects over payment issues, calling the report false and misleading.

The Rivers State Government has firmly denied reports that construction firm Julius Berger is pulling out from project sites due to unpaid dues. A statement from the government’s Senior Special Adviser on Media, Mr. Hector Igbikiowubo, called the report misleading and an intentional attempt to damage the government’s image. The government insisted it has met all financial obligations to contractors, including Julius Berger, especially since the Emergency Rule was declared in the state.

The controversy centers on a large variation request from Julius Berger, which the government says is excessive. The original contract for the Ring Road project was about N195.7 billion. Julius Berger later requested an additional N171.8 billion, an 87.77% increase. If approved, this would push the total cost to roughly N367.5 billion. To protect the state, the government secured a bank loan and advanced Julius Berger 77% of the original contract amount, totaling N150 billion. The government claims the report aims to pressure it into approving this unjustified cost increase.

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